Econ 100 Quiz #4
The figure on the right shows the market for sports drinks. Consider this statement regarding the figure: "If the price falls from $3 to $1 per bottle, quantity demanded changes from 10 to 25 bottles." Which of the following states the same idea? A. If the price changes from $1 to $3, 15 more bottles are demanded. B. A change in quantity demanded can be shown as a movement from point A to B. C. As the price of sports drinks falls, demand decreases. D. As demand changes from January to June, demand will increase from 10 to 25 bottles. E. A change in demand from June to January decreases the demand for sports drinks.
B. A change in quantity demanded can be shown as a movement from point A to B.
Pizza is a normal good. Which figure above shows the effect of a decrease in consumers' incomes? A. Figure A B. Figure B C. Figure C D. Figure D E. Both Figure B and Figure C
B. Figure B
There are five hundred buyers in the market for cheese. If we know each individual's demand curves, to find the market demand, we must A. multiply the price times quantity for each buyer and then add the resulting products together. B. add the quantities that each buyer will purchase at every price. C. add the prices that each buyer will pay at every quantity. D. average the price each buyer is willing to pay for each given quantity. E. give up because there is no way to find the market demand.
B. add the quantities that each buyer will purchase at every price.
When demand increases, A. the demand curve shifts leftward. B. consumers are willing to buy more at any price. C. consumers buy more of the good only if its price falls. D. the price is lower at any level of quantity demanded. E. consumers buy more of the good only if its price rises.
B. consumers are willing to buy more at any price.
Millions of people from Mexico have migrated to the United States. This has reduced the supply of labor in Mexico and increased the supply of labor in the United States. Assume that the demand for labor in Mexico and the United States is unchanged. Then wages in the United States ________ and wages in Mexico ________. A. rise; do not change B. fall; rise C. do not change; fall D. fall; fall E. rise; rise
B. fall; rise
In a recession, consumers have less income to spend. As a result, if dining out is a normal good, then which of the following would happen to the demand curve for dining out? A. The effect on the demand curve is unknown. B. The demand curve would not shift but the price of dining out would fall. C. The demand curve would shift leftward. D. The demand curve would shift rightward. E. The demand curve would not shift but the price of dining out would rise.
C. The demand curve would shift leftward.
Which of the following shifts the demand curve for movies rightward? A. a decrease in the price of move tickets B. an increase in movie star salaries C. an increase in the price of NetFlix, a substitute for movies D. an increase in the price of movie tickets E. an increase in the price of HDTV sets
C. an increase in the price of NetFlix, a substitute for movies
Demand curves slope ________ because as the price increases and other things remain the same, the quantity demanded ________. A. downward; does not change B. upward; decreases C. downward; decreases D. downward; increases E. upward; increases
C. downward; decreases
When the demand curve shifts rightward and the market moves to a new equilibrium, then the A. quantity supplied decreases. B. supply increases. C. supply decreases. D. quantity supplied increases. E. price falls to restore the equilibrium.
D. quantity supplied increases.
If there is a surplus of tacos, then the A. supply curve of tacos will shift leftward to eliminate the surplus. B. quantity of tacos demanded is greater than the quantity of tacos supplied. C. market is at equilibrium. D. quantity of tacos demanded equals the quantity of tacos supplied. E. quantity of tacos demanded is less than the quantity of tacos supplied.
E. quantity of tacos demanded is less than the quantity of tacos supplied.
